Dolphin Entertainment (NASDAQ:DLPN) Releases Quarterly Earnings Results, Beats Estimates By $0.09 EPS

Dolphin Entertainment (NASDAQ:DLPN) announced its quarterly earnings results on Wednesday. The company reported $0.02 EPS for the quarter, topping analysts’ consensus estimates of ($0.07) by $0.09, Zacks reports. Dolphin Entertainment had a negative return on equity of 20.24% and a negative net margin of 6.31%.The company had revenue of $14.44 million during the quarter, compared to analyst estimates of $14.50 million.

Here are the key takeaways from Dolphin Entertainment’s conference call:

• Second-quarter revenue increased 2.5% year over year to $14.4 million, while first-half revenue rose 3.8% to $27.2 million, supported by activity across the company’s agencies and entertainment-related events.
• Profitability weakened, with the operating loss widening to $1.0 million from approximately $0.1 million a year earlier and adjusted EBITDA declining to $243,000 from $628,000; cash fell to $7.7 million from $8.8 million at year-end. Management attributed much of the pressure to roughly $400,000 each in retention bonuses and litigation-related fees.
• Management expects a significant third-quarter profitability improvement as the one-time bonuses and elevated legal costs roll off, while stronger seasonal demand in the second half—particularly at The Digital Dept. and 42West—could support results.
• Dolphin is developing several growth initiatives, including Graviteur Studios, the DealMaker venture partnership, and Copper Books; management expects its first DealMaker venture to reach the market before year-end and is targeting eventual activity of three to four ventures annually without requiring capital from Dolphin’s balance sheet.
• The company projects improving free cash flow from its existing operations as bank debt payments end in roughly two years, saving about $2.2 million annually, and New York and Los Angeles leases expire in the second half of next year, potentially reducing costs by another approximately $1 million per year.

Dolphin Entertainment Stock Down 1.6%

Shares of DLPN traded down $0.02 on Friday, hitting $1.20. 42,874 shares of the stock traded hands, compared to its average volume of 14,090. The business has a 50 day simple moving average of $1.11 and a 200 day simple moving average of $1.36. The company has a market capitalization of $15.62 million, a PE ratio of -4.14 and a beta of 1.90. The company has a debt-to-equity ratio of 1.99, a quick ratio of 0.73 and a current ratio of 0.73. Dolphin Entertainment has a one year low of $0.99 and a one year high of $1.88.

Hedge Funds Weigh In On Dolphin Entertainment

An institutional investor recently raised its stake in Dolphin Entertainment stock. Renaissance Technologies LLC lifted its stake in shares of Dolphin Entertainment, Inc. (NASDAQ:DLPN) by 25.1% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 47,400 shares of the company’s stock after buying an additional 9,500 shares during the period. Renaissance Technologies LLC owned approximately 0.39% of Dolphin Entertainment worth $74,000 at the end of the most recent quarter. Hedge funds and other institutional investors own 8.87% of the company’s stock.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings lowered shares of Dolphin Entertainment from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Tuesday. One research analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, Dolphin Entertainment presently has a consensus rating of “Sell”.

Dolphin Entertainment Company Profile

Dolphin Entertainment, Inc, together with its subsidiaries, operates as an independent entertainment marketing and production company in the United States. The company operates in two segments, Entertainment Publicity, and Marketing and Content Production. The Entertainment Publicity and Marketing segment provides diversified marketing services, including public relations, entertainment and hospitality content marketing, strategic communications, strategic marketing consulting, social media and influencer marketing, digital marketing, creative branding, talent publicity, and entertainment marketing services, as well as produces promotional video content.